Employment shake-up: The rising terror of layoffs
The growing trend of layoffs shows no signs of slowing down. Top companies have announced layoffs, impacting several employees worldwide.
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The layoff terror is nowhere near abating. In fact, 2024 began with 13,095 employees being laid off from Indian startups. While the number of layoffs is undoubtedly lower than the record set in FY23, it is still significantly greater than the numbers noted in layoffs in 2021–2022 as per Layoffs.fyi. The slump in the economy, changes in consumer preferences, automation, technological improvements, etc. are the causes of the sharp increase in layoffs. This highlights the transforming economic environment, which could have significant and lasting implications in the future.
Why are companies laying off?
With the onset of the pandemic, online services surged, which propelled companies spanning various industries to step into a hiring spree to match with the demand. However, past the pandemic, the situation took a different turn, leading businesses to make adjustments to adapt to the new reality.
Market volatility, coupled with reduced consumer spending, were the prime factors that greatly impacted business functioning. Further, with the growing acceptance of digital platforms, consumer behaviour underwent significant changes, which prompted companies to make workforce adjustments. Also, for certain firms, layoffs also became a means of enhancing productivity and profitability while adjusting to losses caused by the pandemic.
Layoff announcements 2024
Google: Google has declared massive layoffs in a number of its divisions, including YouTube, voice assistant, hardware and advertising sales. The goal of this layoff, according to Google CEO Sundar Pichai, is to remove layers in order to streamline execution and increase efficiency in certain domains.
Amazon: Amazon has revealed layoffs that will mostly impact its studio and streaming divisions. The idea behind this move is to streamline operations by focusing on high-impact content and product initiatives. Although the exact number of job cuts has not been disclosed by the tech giant, it has confirmed that the reductions will make up a relatively small percentage within its Prime Video and MGM Studios divisions.
Swiggy: A total of 350–400 positions across sales, customer support and tech divisions will be affected by Swiggy's 6% employee reduction plan. In an effort to control expenses in the face of difficult financial circumstances, the large food and grocery delivery company has informed senior executives about the need to implement layoffs in a gradual manner.
Flipkart: Flipkart, following performance evaluations, has decided to downsize its workforce by 5-7%. Joining the list of companies implementing layoffs, this e-commerce giant plans to carry out the reductions by utilising performance reviews as the basis for the cuts.
SpiceJet: The Indian low-cost airline, SpiceJet, seeks to reduce its personnel by over 15%. The company has faced increasing financial strain, leading to delays or non-payment of salaries to its employees. By initiating a cut-down, SpiceJet aims to reduce costs and retain investors.
Is it an alarming situation for Indians?
Unfortunately, the answer is yes. Events like layoffs can yield significant economic influence, leading to repercussions on a global scale. Especially considering India's significant position in the global labour market, the nation's economy is likely to experience ramifications across various sectors.With the sharp increase in worldwide layoffs, competition in the job market has intensified in India, resulting in a higher unemployment rate. Apart from this, the market for Indian exports has shrunk, adversely affecting the trade balance of the nation. As a result, domestic industries are facing stiff competition from international counterparts.
Sailing through the turbulent waters
To get through the turbulent waters of layoffs, it is crucial to invest in one's own upskilling and reskilling. Though a difficult situation, it can also be a critical period for opportunity and progress. As businesses restructure their approaches, for us as individuals, it is important to adapt and seek avenues for self-reinvention.
